OOH Trends for 2023
Our Group Innovation Director, Katy Hindley, explores the 5 key trends for OOH in 2023
#1: One size doesn’t fit all (in a recession)
Brands can play to OOH strengths as a trusted channel for both brand building and performance in 2023
There is no denying the impact rising inflation and interest rates is having on increasing the cost of living and decreasing consumer confidence and spending power. 66%* of households are being forced to compromise; by switching products and services, deferring to a cheaper alternative or discarding altogether, with this figure rising to 77% in lower income bracket. How we respond to recession will be dependent on social status, shifting priorities, perceived value of products and services, motivation, outlook and means.
As a result, some brands will find it hard to win share of a shrinking wallet next year.
But it’s not all doom and gloom. People are still out there; they’re just going to be more selective in what they choose to pay attention to. It’s a matter of finding them, and then surfacing the right message, to the right audience, at the right time.
And when you think about the OOH channel, the media infrastructure is actually designed around patterns of consumer behaviour; targeting triggers around context, locations and communities, so we’re in a good place to answer these new challenges.
OOH implications
Brands can use OOH’s brand building power to fuel long term growth and brand equity, avoiding (where possible) falling foul of ‘shortermism’. With rising customer cynicism, brands can use OOH’s trustworthy credentials on the frontline of everyday life to deliver their message. If we understand nuanced consumer behaviours, what they currently need and how brands plan to meet that need; and then apply relevant OOH strategies, tactics and solutions, we’re confident brands can strike the right balance next year.
#2: Comfortable with Uncertainty
Brands can use data and (D)OOH screens as part of a wider marketing ecosystem, to flex activity and messaging relevant to ever changing consumer behaviour
Geo-political instability and Global market volatility require a fleet of foot approach for companies, brands, and citizens alike to navigate a new complex world. There is no one single point of truth, no one data set that will tell us all we need to know about consumer behaviour. Over the coming year, we need to look at multiple data sources to build a comprehensive and informative picture, not rely on old data and learnings. And with the (slow) death of the cookie, the rise of contextual advertising is ever more pertinent, with OOH being perfectly positioned to prime audiences in multiple environments and mindsets.
Investment in digitization in OOH, an explosion of location data, the advancement of programmatic and the demand for accessibility have laid the groundwork for (D)OOH to connect with the wider digital ad ecosystem. Plus we know that Dynamic content optimization increases campaign effectiveness on average +18% , something all brands should have in their toolkit.
OOH Implications
Use the tools and technology available to combine multiple data sets, including and first party client data to better understand OOH audiences. The ability to use location data to automate buying, the use of triggers to influence the buying process and dynamic creative to optimize relevance offer the opportunity for brands to be more targeted, efficient, and effective. Programmatic OOH will continue to be one of the fastest growing media channels with omnichannel pipelines becoming easier to navigate and a new focus on establishing what role DOOH can play within the longer consumer journey.
#3. Everything ‘on the go’
Brands can intercept and influence mobile consumers in OOH with instant information curated for relevant search behaviour in work, shop and play
Posterscope has a deep understanding of mobility and consumer movement patterns to finding where consumers are, plus (through a new research study about to be released), what they are searching for. What it shows is that searches that take place in OOH locations are more diverse and valuable to brands than those made at home, as audiences are more primed to receive the message. Not only that, but they also lead to more action.
And with the rollout of 5G and increase in smartphone ownership, the delivery of information ‘on the go’ makes it easier for consumers to interact; brands want this connection.
So, if effective attention is the endgame for brands, for OOH, this data throws a spotlight on context and how consumers engage with brands within everyday environments through habitual behaviours.
OOH implications
There is an opportunity to interrupt the consumer journey using omnichannel planning; brands can use the power OOH has to drive search, including where, when, why and who people are with when they take action. Search data can be used to inform creative messaging depending on current need state, context, triggers and driving motivation. For example, when to use inspirational messaging vs location-based information or sensory cues to enhance the experience. Consider price promotions, offers, new product, referrals, reviews and ethical messaging to drive share of search.
#4 Creativity (still) rules
Creative is still the 2nd biggest determinant of driving ROI after market share and OOH presents brands an infinite canvas to draw upon
Creating for (D)OOH has never been more exciting, however basic old school rules don’t change in terms of what makes an effective OOH creative. Bold and contrasting colours, being minimal with copy, maximum on branding; to make sure the consumer immediately knows it’s you. What has changed is the range of storytelling available to brands through technology and data, and what that means for the coming year.
Creative technology and formats such as 3D anamorphic, WebAR, InApp AR, XR applications and scannable QR codes are transforming OOH into a destination for brands to make content. As a result, OOH ads can extend beyond the physical location and bought impressions, and shared in social channels, integrated into influencer tactics, and become a PR fixture in the water cooler moment.
In terms of tone, do not be put off using emotional and entertaining advertising during recession, just make sure it is appropriate to the mood of your customers. Our research findings are right now supporting the use of advertising that demonstrates humanity through warmth, generosity, and humour; and if it sits within your brand DNA, there is big value in offering consumers a fun, engaging respite!
OOH Implication
Next year will be the battle of the brands; best creative idea, and execution wins!
And for brands who want to really stand out, customized posters are a proven way to achieve more attention and create more engaging shareable conversations with their audiences. From our research, 74% of people agreed that customized posters are more noticeable, 68% said they made a brand look more innovative and creative and 66% agreed they were more memorable. To get an advantage, brands can use creative testing tools, allowing enough lead time to consider what OOH formats, environments and contextual nuances should be planned for to land the right message, with the right technology. Existing creative technology such as 3D, will be cemented into a more scaleable, affordable proposition on multiple formats. QR, AR and XR will offer pure play online and physical retailers and brands an opportunity to ‘extend the store’, making ads shoppable, giving consumers new ways to shop, travel, learn, explore and be entertained.
#5 The Green Future is Now
Addressing the tension between growth, sales and sustainability to create new measures of success
The ad industry has woken up to the impact not only of working advertising channels have on the environment, but also the high consumer consumption it influences; alongside the knowledge that as part of the problem, we are also part of the solution.
OOH is a Platform for Good. Good for audiences, Good for communities, Good for businesses. It has the dual role of serving the local areas it resides, but also a commitment to be a profitable business. 50% of all money invested in the medium gets put back into communities to continually improve local environments, infrastructure and conveniences. OOH is both a static and digital medium at scale, with growth of digital revenue set to be +50% in 2023
The medium is unique in that it’s both digitizing physical OOH infrastructure and becoming more sustainable in tandem. All four Major OOH media owners have implemented quality and efficiency strategies across their entire estates, to offset this transformation and drive carbon neutrality across their business, services and products. Through premium site selection, reducing delivery, recyclable products, conversion to energy efficient LEDs tubes and planting trees, OOH has reduced emissions on average by 80% and on track to carbon net zero (90%) by 2030.
OOH Implication
As companies and brands strive to make the most sustainable media choices, the OOH industry will continue to work on measurement of emissions via media carbon calculators, globally certified accreditation from value chain suppliers and seek to take control of what is controllable. As a one-to-many channel, that uses 100% renewable energy, multiple media owner initiatives such as bee hotels, vertical meadows and recycled 6 sheet paper (invented by us), brands can feel confident that OOH is a trusted, responsible media choice next year to communicate with audiences. There is also an opportunity for brands to re-think their KPI’s and creative messaging. Can sustainable brand purpose live authentically in their OOH ads, and is it an opportunity to use their power of influence for good? Not suitable for all, but for those that can, should.